I am working on my assignment. help me understand these questions

4 An actuary wishes to analyse the amounts paid by a group of insurers on their respective portfolios of commercial property insurance policies using the models of Empirical Bayes Credibility Theory. The actuary obtains the following information about the amounts of claim payments made and the number of policies sold for each of three different insurers. The data obtained are as follows. Year 1 Year 2 Year 3 Year 4 E14.2m E15.8m E22.7m E19.0m Insurer A 163 189 252 199 E58.6m E63.1m E81.0m E64.2m Insurer B 4,435 4,761 5,576 4,581 E123m E132m E161m E133m Insurer C 16,184 17,443 20,102 18,000 (i) Analyse the data using EBCT Model 1, and calculate the expected total claim payment to be made by Insurer B in the coming year. [6] (ii) Analyse the data using EBCT Model 2, and again calculate the expected payout amount for Insurer B in the coming year, assuming that the expected number of policies sold for the coming year for Insurer B is 4,800. You may use the summary statistics given below, which have been calculated using the formulae and notation given in the Tables, again working in millions of pounds. Subscripts 1, 2 and 3 refer to Insurers A, B and C respectively. [8] ERx1; - X1)2 = 0.014667 ER(x1 -x) =5.106461 [Ri(X2; -X2) = 0.006103 [Pi(X2; - x)? =0.336408 [fi(x3] -X3)2 =0.003979 [By(X3i - X)? = 0.292641 (iii) Comment on your results. [2] [Total 16]1 The following were calculated from the financial statements of a manufacturing company: inventory turnover period 15 days trade receivables turnover period 45 days payables turnover period 50 days For how long, on average, does the company have cash tied up in any particular piece of stock? 10 days 15 days 60 days 110 days [2] 2 A company has a $100,000 line of credit at 6.0% po with a 0.5% po commitment fee on the full amount available. The company draws down $40,000 for 6 months. The annual financing cost of this arrangement is: A 0.5% B 6.0% on 6.5% 7.25% [2] 3 Outline the advantages and disadvantages of the just-in-time approach to inventory management. [5] 4 A furniture retailer is using a simple mathematical technique to minimise the total cost of ordering and holding certain items of inventory. In particular it is considering a certain type of table that it sells. It estimates that it sells 5,000 of these tables each year and that demand is spread evenly throughout the year. It also assumes that lead times and delivery times are zero. Suppose that the cost to the retailer of placing and receiving an order for a delivery of tables from its supplier is $70 and that the annual cost of holding each table in stock is $2. Calculate the number of tables the furniture retailer should order in each order from its supplier in order to minimise the total cost of ordering the tables and holding them in stock. [5]